U.S. regulator sanctions bitcoin trading platform over wash trades

September 24, 2015 5:11 PM

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WASHINGTON, Sept 24 A New Jersey-based bitcoin swap trading platform was sanctioned by U.S. derivatives regulators on Thursday after it allegedly facilitated illegal wash trades and then misled U.S. regulators both through press releases and at a government-sponsored public meeting.

The Commodity Futures Trading Commission said TerraExchange LLC pre-arranged the sale of a swap that derived its value from bitcoins for trading last October, in an effort to test its systems.